A proposed development may sometimes require works to be carried out on the public highway before the development can proceed.
These works could include creating a new access, improving a junction, widening a road, installing pedestrian crossings or making other changes to the highway network.
In these circumstances, a Section 278 Agreement may be required.
While there are separate questions about what a Section 278 Agreement is and its legal basis, developers and landowners are often more concerned about the practical issues. When is a Section 278 Agreement needed? How does the process work? Who pays for the highway works? And what could the overall cost be?
The answer will depend on the nature of the development, the highway works required and the requirements of the relevant highway authority.
At Charrette Law, we advise landowners, property owners and developers on planning and development-related matters, including planning obligations, highway agreements and legal issues affecting development projects.
When Is a Section 278 Agreement Required?
A Section 278 Agreement may be required where a developer needs to carry out works to a public highway in connection with a development.
The need for an agreement often arises during the planning process where highway improvements are necessary to make a proposed development acceptable.
For example, a new residential, commercial or mixed-use development may increase traffic on the surrounding road network or require a new access from the public highway.
The relevant highway authority may therefore require certain works to be completed.
Common Situations Where a Section 278 Agreement May Be Needed
The circumstances will vary, but a Section 278 Agreement may be required for works such as:
- Creating a new access to a development site
- Altering an existing access
- Improving a road junction
- Widening a highway
- Constructing or improving footways
- Installing pedestrian crossings
- Altering traffic signals
- Providing cycle infrastructure
- Installing street lighting
- Changing road layouts
- Carrying out other works within the public highway
New Access to a Development Site
A development may require a new or improved access from the public highway.
The highway authority may assess whether the proposed access is safe and suitable, taking into account issues such as:
- Visibility
- Traffic movements
- Pedestrian safety
- Highway capacity
- Road design
- The impact on the surrounding network
Where works are required within the public highway, a Section 278 Agreement may be needed before those works can proceed.
Highway Improvements Required by Planning Permission
Planning permission may require highway improvements to address the impact of a proposed development.
For example, a larger development could generate additional traffic at a nearby junction. The highway authority may require junction improvements, pedestrian facilities or other mitigation works.
A Section 278 Agreement can provide the legal framework for carrying out those works.
Works Required by Planning Conditions
Planning conditions may also specify when certain highway works must be completed.
A condition may prevent development from starting, being occupied or being brought into use until particular highway requirements have been satisfied.
Developers should therefore review planning conditions carefully and identify any requirement for a Section 278 Agreement at an early stage.
How Does the Section 278 Agreement Process Work?
The precise process can vary between highway authorities and according to the complexity of the proposed works.
However, the process will generally involve identifying the required works, preparing technical information, agreeing the terms of the agreement and completing the works.
Step 1: Identify the Highway Requirements
The first stage is to establish what highway works are required.
This may happen during the planning application process or after planning permission has been granted.
Supporting documents may include:
- Transport assessments
- Transport statements
- Highway drawings
- Travel plans
- Technical reports
The highway authority may identify works needed to address the development’s impact on the highway network.
Step 2: Prepare the Highway Design
Detailed technical designs may be required before the agreement can be finalised.
Depending on the nature of the works, the design process may involve highways engineers and other specialists.
Issues may include:
- Road layouts
- Drainage
- Visibility
- Pedestrian facilities
- Street lighting
- Traffic management
- Existing utilities
- Construction requirements
The highway authority will normally need to review and approve the relevant technical information.
Step 3: Agree and Complete the Section 278 Agreement
The developer and highway authority will agree the terms of the Section 278 Agreement.
The agreement may address:
- The highway works to be carried out
- Approved drawings and specifications
- The developer’s responsibilities
- The timing of the works
- Inspection and supervision
- Payment of costs
- Bonds or financial security
- Completion requirements
The agreement should clearly establish the responsibilities of the parties before work begins.
Step 4: Provide Financial Security
The highway authority may require a bond or another form of financial security.
This can provide protection to ensure that the agreed works are completed.
The amount of financial security required will depend on the value and nature of the proposed works.
Step 5: Carry Out and Complete the Works
Once the necessary approvals and agreements are in place, the highway works can proceed.
The highway authority may inspect or supervise the works during construction.
Following completion, further inspections may be required before the authority confirms that the relevant requirements have been satisfied.
How Much Does a Section 278 Agreement Cost?
There is no fixed cost for a Section 278 Agreement.
The overall expense can vary significantly depending on the scale of the development and the complexity of the highway works.
It is also important to remember that the cost is not limited to the legal agreement itself.
Highway Authority Fees
The highway authority may charge fees for dealing with the agreement and associated works.
These may include costs relating to:
- Reviewing technical designs
- Engineering input
- Legal work
- Processing the agreement
- Site inspections
- Supervision of the works
The fees and charging structure can vary between highway authorities.
Legal Fees
Legal costs may arise from preparing, reviewing and negotiating the agreement.
The amount of legal work required can increase where there are complex development arrangements, multiple landowners or other agreements connected with the development.
Engineering and Design Costs
Highway works will often require detailed technical design.
This may involve highways engineers and other consultants.
A relatively simple access alteration may involve fewer technical requirements than a major junction improvement or extensive highway works.
Construction Costs
The physical construction works may represent one of the largest parts of the overall cost.
Depending on the project, these costs could include:
- Road construction
- Junction improvements
- Footways
- Drainage
- Street lighting
- Traffic signals
- Signage
- Road markings
- Traffic management
The cost will depend on the scale and specification of the required works.
Bonds and Financial Security
A developer may also be required to provide a bond or other financial security.
While the precise arrangements will depend on the agreement, this requirement should be considered when planning the development budget.
Utility Diversions
Existing utilities can create significant additional costs.
The proposed works may affect:
- Water infrastructure
- Gas pipes
- Electricity cables
- Telecommunications equipment
- Drainage systems
Utility issues can also cause delays where infrastructure needs to be moved, protected or redesigned.
Who Pays for a Section 278 Agreement?
In most development-related situations, the developer will generally be responsible for the costs associated with the Section 278 process and the required highway works.
These costs may include:
- Highway authority fees
- Legal fees
- Engineering and design costs
- Construction costs
- Inspection and supervision fees
- Bonds or financial security
- Utility-related costs
Developers should consider these costs as part of the overall development budget rather than focusing only on the physical construction works.
What Can Increase the Cost of a Section 278 Agreement?
Several factors can increase the overall cost and complexity of the process.
The Scale of the Development
Larger developments may generate more traffic and require more substantial highway improvements.
A small development may require limited access works, while a larger residential or commercial project could require significant improvements to the surrounding road network.
Complex Highway Works
Works involving busy roads, major junctions, traffic signals or substantial alterations to the highway can require more extensive design, approvals and construction.
Existing Utilities
Underground infrastructure can create unexpected problems and additional costs.
Early investigations can help identify potential utility issues before construction begins.
Changes and Delays
Changes to the development or highway design can result in additional professional fees and delays.
Technical information may need to be revised, and further approval from the highway authority may be required.
Multiple Landowners or Property Interests
The process can become more complicated where several parties have interests in land connected to the development.
Land ownership and highway boundaries should therefore be investigated at an early stage.
How Long Does a Section 278 Agreement Take?
There is no fixed timescale.
The process will depend on the complexity of the proposed works, the quality of the technical information and the requirements of the relevant highway authority.
Delays can occur where:
- Technical designs are incomplete
- Further information is requested
- Designs need to be revised
- Utility issues arise
- Land ownership issues need to be resolved
- The terms of the agreement have not been finalised
Developers should therefore consider potential Section 278 requirements early in the planning and development process.
How Can Developers Reduce Delays and Unexpected Costs?
Early preparation can help manage both timescales and costs.
Identify Highway Requirements Early
Highway issues should be considered as early as possible.
Understanding what improvements may be required can help developers plan their budgets and development programme.
Obtain Appropriate Technical Advice
Highways engineers and other specialists can help identify potential design problems before formal submissions are made.
Early technical advice may reduce the need for significant changes later.
Budget for the Full Process
The budget should account for more than the construction works.
Professional fees, highway authority charges, legal costs, bonds and potential utility works should also be considered.
Review Planning Conditions Carefully
Planning conditions may specify when a Section 278 Agreement or highway works must be completed.
Failure to understand these requirements could delay the development or prevent occupation.
How Charrette Law Can Help With Section 278 Agreements
Section 278 Agreements can form an important part of a wider development project.
They may interact with planning permissions, planning conditions, land ownership arrangements and other development-related agreements.
Planning and Development Advice
We advise on legal and planning issues affecting development projects.
Planning Obligations and Development Agreements
We can assist with planning obligations and other agreements connected with proposed development.
Property and Land Matters
We can provide advice on land ownership, access rights and other property issues that may affect a development.
Planning Applications and Appeals
We can assist with planning applications, planning decisions and related development matters.
Get Advice on Section 278 Agreements and Highway Works
A Section 278 Agreement can be an important part of a development where works are required to the public highway.
The overall cost may include highway authority fees, legal costs, technical design, construction, inspections, financial security and potential utility works.
Identifying the likely requirements early can help developers plan their budgets and reduce the risk of unnecessary delays.
Conclusion
A Section 278 Agreement may be required where a proposed development involves works to the public highway.
The process can involve technical design, negotiations with the highway authority, legal documentation, financial security and the completion of approved highway works.
There is no fixed cost. The overall expense will depend on the scale and complexity of the works, the relevant highway authority’s requirements, professional fees and potential additional issues such as utility diversions.
For developers and landowners, identifying the possible need for a Section 278 Agreement early can be important for project budgeting and timescales.
If your proposed development requires highway works or you need advice on a Section 278 Agreement, contact Charrette Law for professional guidance on planning, development and related property matters.
Frequently Asked Questions About Section 278 Agreements
When Do I Need a Section 278 Agreement?
A Section 278 Agreement may be required where a developer needs to carry out works to the public highway in connection with a proposed development.
Who Pays for a Section 278 Agreement?
In most development-related cases, the developer will generally be responsible for the costs associated with the agreement and the required highway works.
How Much Does a Section 278 Agreement Cost?
There is no fixed cost. Expenses may include highway authority fees, legal fees, engineering costs, construction costs, inspections, bonds and potential utility works.
How Long Does a Section 278 Agreement Take?
Timescales vary depending on the complexity of the works, the technical information provided and the requirements of the relevant highway authority.
Does Planning Permission Include a Section 278 Agreement?
Not necessarily. Planning permission may require highway improvements, but a separate Section 278 Agreement may be needed before works to the public highway can be carried out.
Can a Section 278 Agreement Delay a Development?
Yes. Delays may occur where designs are incomplete, further approvals are required, utility issues arise or the agreement has not been finalised.
Can Charrette Law Help With Section 278 Agreements?
Yes. Charrette Law Firm and Expert Planning Services in UK can advise landowners, property owners and developers on planning, development-related agreements and property matters affecting development projects.
